Silicon Valley’s “huge shortage”: Amodei calls Wang, Musk partners with a rival

A global shortage of raw computing power is upending Silicon Valley, sparking bitter corporate turf wars, sending executives on worldwide scrambles for hardware, and forging improbable alliances between fierce rivals, according to a report by The Wall Street Journal (WSJ). The fierce bottleneck has become the tech industry's central battleground, reshaping executive suites and imperiling the prospects of up-and-coming startups that cannot secure enough chips to keep pace.According to a WSJ report, the severity of the compute crunch was laid bare inside Google, which spent $2.7 billion in 2024 to rehire pioneering researcher Noam Shazeer to steer key projects like its flagship Gemini models. Despite the enormous price tag, Google failed to guarantee Shazeer the computing capacity he sought. After internal reallocations cut his team’s resources in favor of another initiative, Shazeer departed for rival OpenAI, highlighting an internal environment where researchers frequently quarrel over processing power.